BOARD MEETING DATE: September 10, 2010
AGENDA NO. 37

PROPOSAL:

Consider Options for Janitorial Services at Diamond Bar Headquarters and Extend Current Janitorial Services Contract

SYNOPSIS:

The current contract for janitorial services expires on October 31, 2010. On April 9, 2010, the Administrative Committee reviewed a request to release an RFP for a new three-year contract. At the direction of the Committee, the item was postponed to allow staff to respond to the Committee’s request for additional comparative data on the cost difference between continuing to contract out for these services versus hiring new employees. This action includes an option to either issue an RFP to solicit bids from interested parties in order to secure a new three-year contract, or hire thirteen (13) new full-time employees to perform these services. This action is also to extend the current janitorial services contract at a monthly rate of $29,363, for no more than six months, pending a determination whether to contract out or hire employees. Funding for a janitorial services contract is included in the FY 2010-11 Budget, however, additional appropriations to the Budget would be necessary to cover any increase in AQMD staffing levels.

COMMITTEE:

Administrative, July 16, 2010, Recommended for Approval; however, additional information and options were added subsequent to Committee review.

RECOMMENDED ACTIONS:

1.

1. Approve issuance of RFP #P2011-02 to solicit proposals for janitorial services for Diamond Bar Headquarters; OR
2.  Hire 13 new full-time employees to perform these services.

2. Approve an extension of the current janitorial services contract, on a month-to-month basis, not to exceed six months, at a rate of $29,363 per month.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On October 5, 2007, the Board authorized a three-year contract with Diamond Contract Services, to provide janitorial services at Diamond Bar Headquarters, which is due to expire October 31, 2010.

On April 9, 2010, the Administrative Committee reviewed a request to release an RFP to solicit bids from interested parties in order to secure a new three-year janitorial services contract, to commence November 1, 2010. At the Committee’s direction, the item was postponed to allow staff to conduct a cost comparison of continuing to contract out for janitorial services (the cost of the current contract is $29,363 per month), versus hiring candidates as new AQMD employees.

Staff conducted labor rate comparisons using the current staffing levels of one supervisor and 12 janitor positions, and associated health and retirement benefits should they become AQMD employees. Staff compared current labor rates of Custodian and Custodian Working Supervisor class specifications from Los Angeles County, Riverside County, and City of Riverside. The results of the comparison indicate that hiring 13 new employees to provide janitorial services, along with the costs for the initial startup and recurring cleaning equipment and supplies, would increase costs to the agency by at least twice the current contract cost.

Proposal

Staff recommends extending the current janitorial services contract, at the current monthly rate of $29,363, on a month-to-month basis (not to exceed six months). This extension will allow sufficient time to either proceed with releasing RFP #2011-02 to solicit bids for janitorial services for a new three-year contract, or hire 13 new full-time employees to perform these services.

If the Board’s direction is to hire new employees to perform janitorial services, at least two new job class specifications must be drafted and adopted by the Board. Board approval will also be required to add the necessary appropriations to the FY 2010-11 Budget, to fund the cost of the increase in staff. 

Outreach

Should the option of releasing the RFP be approved by the Board, and in accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP and inviting bids will be published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin. 

Additionally, potential bidders may be notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s website (http://www.aqmd.gov where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724. 

Proposal Evaluation

If the option of releasing the RFP is approved by the Board, proposals will be reviewed and evaluated by a diverse, technically qualified panel, in accordance with criteria contained in the attached RFP. 

Resource Impacts

Sufficient funds are available in the approved FY 2010-11 Budget to continue contracting for janitorial services. Since this may be a three-year contract, continuing funds will need to be included in the budgets for each of the remaining fiscal years of the contract.

If the Board decides to hire 13 new employees to perform janitorial services, the FY 2010-11 Budget would need to be modified to increase the number of full-time employees by this amount, and sufficient funds appropriated for the staffing increase. 

Attachment (DOC, 886k)

RFP #2011-02 – Janitorial Services